In his speech, Shinichi Uchida, deputy governor of the Bank of Japan, suggested that the base rate would still be gradually raised, which may quell speculation about an early rate hike. "If the economic outlook materializes, the Bank of Japan will continue to raise policy rates and adjust the degree of monetary easing accordingly," Mr. Uchida said in a speech to business leaders on Wednesday. "The key point of the outlook in this regard is that the central bank is expected to achieve its 2 per cent price stability target." Uchida said officials will have to monitor the economy's response to each rate hike, which the central bank has raised three times in the past 12 months, because it is difficult to tell exactly where the neutral rate, which is neither restrictive nor stimulative, is. The comment suggests the central bank is unlikely to raise rates at two consecutive meetings, including in March after a January hike. He hinted that the base rate could rise to at least 1 percent by the end of fiscal 2026, based on a range of estimates.